E-Commerce Marketing is leveraging advertising strategies to attract visitors to your online business, turn those visitors into buyers, and keep those buyers coming back for more. You can raise brand awareness, encourage client loyalty, and eventually boost online sales with the aid of a solid marketing plan.
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E-Commerce Marketing FAQs
What is e-commerce marketing?
E-commerce is the process of buying, selling goods, and transferring money all on the internet. All stores that sell products online can be considered as e-commerces.
Ecommerce Marketing is an activity using digital marketing tools, such as Email Marketing, SEO, SEM, SMA, SMM, etc, on various digital channels in order to attract online customers’ attention and actions toward the brand, and then lead them to do a specific task, such as purchasing the products or services, providing data, sharing links, posts, etc. All of these above serve the ultimate aim of improving brand awareness and increasing sales.
What is a good ROI for e-commerce?
ROI stands for Return on Investment - is the ratio of net profit to total investment costs. ROI is useful for measuring financial profits in the past and the financial potential in the future. You can also evaluate and make sound business decisions through the ROI index, compare business opportunities and choose the best strategy.
In Marketing, ROI will be calculated according to the formula:
= Net Profit / Investment Cost x 100
= (Total Revenue – Marketing Cost) / Marketing Cost x 100
A 2:1 ROI
This ROI shows that your business did not make any profit in the given period because the cost of production already accounts for 50% of the selling price of the product. This means that the business has just enough to re-invest and has not yet made a profit.
A 5:1 ROI
As such, the ideal ROI for businesses would be around 5:1. ROI. The ROI index higher or lower than 5:1 will depend a lot on the net production costs of the business.
There is no fixed level to evaluate the best ROI, if this indicator is positive then you will determine if the investment activity is profitable. The higher of the ROI, the more profit you will get, and vice versa.
How to do e-commerce marketing? / How to do digital marketing for an e-commerce website?
E-commerce marketing is the fastest and most effective way to reach new customers in the digital marketplace. From marketing opportunities to attractive interfaces, e-commerce offers a smart way to increase sales and drive business revenue.
- Focus on site speed & images.
- Make a lot of videos.
- Harnessing User-Generated content and influencer marketing.
- Try filters and QR codes.
- Create a shopping social network.
- Send personalized emails.
- Issue coupons on an e-commerce site.
Do I need a business license for an e-commerce store?
Whether your business sells online or not, all businesses need to have a business license. Businesses must submit an application for a business license because it gives the government a tool to monitor businesses operating in the area and monitor tax income. Moreover, it is something that customers can rely on to know that if the business is trustable enough for s long-term purchase.
In general, having a business license help your e-commerce store:
- Prove that you are a limited liability company or a sole proprietor that can take responsibility for what you are offering customers whenever an issue happens..
- Provide customers an overview of your company's operations.
- Prove that you have a sales tax license through your state agency.
- Be able to meet any required inspections and other permits according to the law.
There are many other special documents about the licenses when your e-commerce business does business such as drug goods, cosmetics, and especially alcohol.
Is e-commerce the same as digital marketing?
Digital marketing and e-commerce are distinct, despite being frequently misunderstood.
While digital marketing is an essential component of e-commerce, the two are distinct by definition. Because in e-commerce, popular marketing techniques such as SEO, Content, media, and advertising are applied. However, Digital marketing can be applied to many fields, and e-commerce is used for buying and selling purposes.